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Wood Group wins big contract with TEVA in Germany
John Wood Group has been awarded a multi-million dollar contract by TEVA Biotech to provide engineering, procurement, construction management, commissioning and qualification for a new biotechnological facility to be built in Ulm, Germany, it announced on Wednesday.
The FTSE 250 company said the plant would produce pharmaceutical ingredients from cell cultures in a new eight-level building to be constructed within TEVA's existing biotechnology production site.
Wood EAAA Capital Projects Group would execute detailed design and procurements services for a lump sum fee, as well as construction management and commissioning/qualification services under a reimbursable contract.
Expected completion was set down for 2020, while technical transfer was planned to begin in 2021.
Prior to the award, Wood had completed basic design and an investment cost estimate for the same facility under a previous contract, which was awarded on a competitive basis.
"This contract reflects TEVA's trust in our ability to execute projects of this size in Germany and validates our global expertise in the development of active pharmaceutical ingredient facilities," said Wood Group chief executive Robin Watson.
"We will draw upon our local knowledge, global resources, and four decades of experience working with the world's top drug manufacturers to deliver a state-of-the-art facility to TEVA."
The board said the "important" contract increased Wood's share in the pharmaceutical market, and enhanced its scale and diversity in Europe.